There is another way to calculate the Basic salary too
As rightly said, there is n't any hard and fast rules for calculating the basic pay.

The current scenario is If the Basic pay is less than Rs 3500, the employer has to pay the minimum Statutory bonus ranging from 8.33%. Hence the employer makes the minimum basic of Rs 3600 and above. With effect from new parliamentry note of Basic revision to Rs 10000 towards Statutory bonus is still to be worked out.

However here are the few tips:
1. Basic Salary would depends on the designation level of the person.
2. Basic is usually fixed depending on the CTC (cost to the company). This can range from 20 to 60%.
3. Advisable to have optimum level to basic salary and get this standardized across the grades / levels for operational convinience & PF remittence which will affect employee's take home
4. Once the basic pay is fixed we can fix the other components with the required percentages (HRA, Other allowance, Medical, LTA, Reimbursemnts, etc

Basic Salary: 30 % - 50% of the CTC (Cost to Company)
HRA: 50% of Basic
Dearness Allowance: Most Company Will not have this parameter
This (D.A) will be alloted by the Government
D.A is fully taxable
Transport Allowance: Upto 8000/month is not taxable
Telephone Charges: Fully Taxable
Deputation Allowance: Completely Taxable
Annual Medial reimbursement: Rs.15,000/-

Gross Salary + Statuory like PF = CTC
Gross - Deductions = Take Home

Hope this will help you

Best Regards
Isaac Patturaja

POSTING RULES OF CONDUCT

Do not post anything derogatory about any company or person.

Sharing articles from other websites should be done by posting a link to the original article.

Why Vote? User validation is extremely important for good content to prosper.

Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.